SMI Loan Tue, 17 May 2022 16:24:57 +0000 en-US hourly 1 SMI Loan 32 32 Treasury Department Proposes Non-Ready Status for Access to Earned Wages | Sheppard Mullin Richter & Hampton LLP Tue, 17 May 2022 16:24:57 +0000

In March, the US Treasury Department released its annual report General explanations of revenue proposals from the administration, commonly referred to as the “Green Book”. Among other revenue proposals, the Treasury addressed the treatment of pay-as-you-go arrangements or Earned Wage Access (EWA) schemes, which have grown in popularity in recent years (previously discussed in our Labor and employment). EWA programs typically allow employees to access accrued wages before the end of their regular pay cycle.

While state and federal financial regulators have provided inconsistent guidance on whether EWAs should be considered credit extensions requiring standard consumer disclosures and other protections (discussed in a previous blog post here), a A separate concern arises under current tax laws. Specifically, employees who receive EWA advances may be deemed to be in “implied receipt” of their wages, creating payroll withholding and deposit charges for employers to reconfigure payroll systems to account for this. retainer and this deposit more frequently than the b-weekly or typical deposit. monthly pay cycle. The Treasury Department says in its proposal that EWA suppliers appear to have largely ignored “implied receipt” obligations to date.

To address the issue, the Treasury has proposed the following changes to the Internal Revenue Code:

  • Provide a definition of the terms of remuneration on request;
  • Clarify that on-demand payment terms are not loans;
  • Provide for on-demand pay arrangements to be treated as weekly pay periods, even if employees have access to pay during the week; and
  • Provide special deposit rules for on-demand payment terms.

According to the Treasury,[l]Legislation addressing the tax treatment of pay-as-you-go would provide certainty and consistency for taxpayers and establish a uniform, manageable system for the IRS. These changes would come into effect for calendar years and quarters beginning after December 31, 2022.

Put into practice : While the proposal is intended to bring certainty to EWA agreements, it is important to amend the tax legislation to clarify that pay-as-you-go agreements are not loans because, as noted above, CFPB guidance to to date have been less clear when it comes to defining EWA products as credit extensions. Additionally, state regulators have considered and noted other legal considerations, such as state laws that deem the payday advance to be treated as a loan (see here).

In addition to appropriate tax and consumer credit considerations, EWA programs involve multiple hourly wage considerations for employers using EWA agreements, including whether EWA programs:

  • Represents an illegal assignment of wages;
  • Imposes transaction fees or subscription fees that act as barriers to accessing earned wages;
  • Forwards earned wages to an eligible account that releases the employer from its obligations to pay wages; and or
  • Constitutes an unauthorized deduction.

As each EWA program typically uses a different framework and approach to delivering EWA, each program should be assessed and assessed individually to appreciate the specific risks that may be presented by the EWA program. Additionally, employers wishing to offer this program to employees or EWA program providers should consult with an experienced employment attorney before rolling out this wage benefit to best position the program for success.

BNPL 2.0 is coming to America – Zilch reinvents installment payment plans, no interest or late fees and cashback Tue, 17 May 2022 10:56:00 +0000

MIAMI–(BUSINESS WIRE)–Nothing, a next-generation payments platform and Buy Now, Pay Later (BNPL), with a BNPL 2.0 business model that works directly with consumers and has no fees or late fees as well as $2 instant cashback rewards %, was launched in the United States with more than 150,000 pre-registered customers. Zilch is accepted wherever Mastercard can be used.

Zilch’s arrival in the US comes after reaching more than two million customers in the 18 months since its UK launch, making it one of the fastest growing fintechs in the world. world and one of the largest providers of BNPL in this country. Meanwhile, Zilch has raised $400 million in debt and equity from Goldman Sachs and others, earning it a valuation of over $2 billion in its most recent Series C funding round. .

Using a blend of Open Banking technology combined with flexible credit checks and its own proprietary behavioral data every time a customer spends allows Zilch to develop a real-time view of a consumer’s financial health. . This allows Zilch to create a 360 degree picture of a customer’s accessibility profile and provide accurate, personalized spending recommendations.

Along with its launch, Zilch is partnering with Experian to pioneer reciprocal payment plan reporting to the Credit Reporting Agency (CRA) data set. This is designed to help ensure the financial health of consumers by providing greater transparency and accuracy, while rewarding customers for responsible behavior to build credit scores.

“In 2020, American consumers paid $120 billion in credit card fees and delays, which we believe are unacceptable and fundamentally inconsistent with consumer interests,” said Philip Belamant, CEO and co-founder of Zilch. “They are set up to fail and need more flexibility, especially during a cost of living crisis and a time of soaring inflation, to pay for goods and services how and when they want – with a system that avoids late payments and unnecessary and costly expenses.”

BNPL’s payment and financing programs are gaining popularity around the world because they facilitate consumers’ ability to make purchases when needed and pay for them at a later date, often without interest.

“Our experience in the UK and the survey we conducted here in the US clearly shows that US consumers expect much more from providers of BNPL, what we call BNPL 2.0 – removing what consumers don’t like not (lack of ubiquity/fees and/or late fees) Zilch also gives what consumers say they value – cash back, which can be used to discount larger purchases,” Belamant added.

Zilch customers can pay over six weeks, in four installments, or in one installment. In particular, customers who pay in full benefit from offers and cashback, giving consumers the freedom and benefits of credit services, without any cost. Through its partnership with Mastercard, Zilch can be used by 38.7 million retailers worldwide.

Industry-Leading Strategic Partners

One of the keys to Zilch’s growth has been its successful partnerships with industry-leading companies across the fintech spectrum. These partnerships form the behind-the-scenes foundation that enables Zilch to provide consumers with an easy and transparent way to pay for goods and services in the way that best suits them.

“Zilch is emblematic of the innovative, disruptive and fast-growing fintech that we seek to build long-term relationships with,” said Gilles Gade, Founder, President and CEO of Cross River. “Cross River’s technology opens up opportunities for partners across the fintech ecosystem, and a partner like Zilch helps drive financial inclusion and access to responsible credit.”

“Zilch has packaged the BNPL customer experience that has been so popular into an easy-to-use virtual card, with spending controls tailored to each individual user,” said Vidya Peters, Chief Operating Officer at Marqeta. “We felt their product was a close match with Marqeta and the payment innovations our modern card issuance platform enables. We look forward to supporting them as they launch their product in the US market.

Guillaume Pousaz, Founder and CEO of, said, “With a rapid rise to success in the BNPL space, Zilch has taken a bold and innovative approach to helping consumers afford the goods and services they need. US-based payments processor, is proud to support Zilch’s regional expansion with our unique API – and we look forward to fueling its global growth in the months and years to come. »

US headquarters based in Miami

To support US expansion and operations, Zilch opened a Miami headquarters led by Zilch US CEO Albert Periu. Mr. Periu and Zilch believe the US market for the company’s services could grow to as many as 125 million people and plan to scale the business accordingly. Zilch plans to hire more than 100 employees in the United States over the next year.

“We are thrilled to be fully operational from Zilch’s US headquarters in Miami, as the city’s entrepreneurial spirit and diverse talent provide an excellent home for the company’s growth in the United States” , said Albert Periu, CEO of Zilch US.

Currently, Zilch’s Miami office employs teams in various departments of the company, including operations, engineering, marketing, design, and human resources.

About Zilch:

Born to create the world’s most empowering way to pay, now, pay later” (BNPL) and the payments industry with innovative products that empower customers to manage their cash responsibly. Zilch partners directly with consumers rather than merchants, allowing customers to pay by debit or credit anywhere Mastercard is accepted. Zilch offers its customers the best ways to pay – credit or debit – save money and get money back – schedule refunds with reminders and/or even snooze payments at no cost.

Zilch uses a unique blend of world-class CRA data, Open Banking and its own proprietary behavioral data technologies to make active consumer lending decisions every time a client spends to drive accountability. This creates a real-time 360 ​​degree view and assessment of a customer’s affordability.

Since its launch in September 2020, the company has amassed over two million customers in the UK and is adding over 250,000 new users per month. Additionally, Zilch is the fastest European company to go from Series A to dual unicorn status in just 14 months.

For more information visit:

]]> How to Pay Off Debt Before a Recession – Forbes Advisor Mon, 16 May 2022 19:05:36 +0000 Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

In times of economic uncertainty, many Americans are becoming more cautious about how they spend their extra cash. But if you’re also in debt, you might be wondering how to prepare for a recession and what impact it might have on your finances.

Here’s why a recession could be a possibility in the near future and the different strategies you can use to get your debt under control in a recession.

Strategies for Managing Debt Before a Recession Hits

Lisa Kirchenbauer, CFP and founder of Omega Wealth Management, emphasizes that managing your finances before a recession hits is all about striking a balance. While paying off debt is important, it may not be the smartest decision if it takes all your cash away.

After all, you may need to have an emergency fund on hand if you are unlucky enough to lose a job in the future. According to data from the Pew Research Center, 15% of American adults faced at least one spell of unemployment in 2020, the last year the United States experienced a recession.

But if you’re determined to pay off your debt while the economy is stable, here are some strategies you can use to get closer to the finish line.

How to pay off credit card debt

If you have a balance on your credit cards, you can pay a lot of interest over time. According to the Federal Reserve, in March 2022 the average credit card interest rate was 16.17% on assessed interest accounts. However, Kirchenbauer points out that some card rates can be even higher, especially for borrowers with lower credit scores.

Let’s say you have $5,000 and your credit card variable APR is 16%. If you pay $200 a month, it will take you 31 months to pay off your debt and you will be charged interest of $1,112. And with interest rates going up, you could end up owing even more interest.

If your cards already have balances, Bruce McClary, senior vice president of memberships and communications for the National Foundation for Credit Counseling, recommends talking to your lender.

It says if your credit score has improved since you first applied for your card, you may be able to negotiate a lower interest rate, which could save you money in fees. of interests.

How to repay personal loans

If you’re having trouble managing the monthly payments on a personal loan, Kirchenbauer recommends determining if it’s possible to transfer the debt to another financial product with a more affordable interest rate. She suggests looking into a 0% APR balance transfer card or a home equity line of credit.

However, debt transfer can involve risks. If you pay off your personal loans early, it may result in a prepayment penalty, which is a fee your lender may charge you if you pay off your loan sooner than expected. Kirchenbauer adds that 0% APR cards and HELOCs may only be available to those with very good to excellent credit scores.

For those with low credit scores, Todd Christensen, the education manager at Debt Reduction Services, Inc, a nonprofit financial counseling agency, says reworking your budget may be your best bet. “It’s not complicated,” he says, “but cutting back on non-essential expenses or starting a side business to generate extra income can go a long way in helping you keep up with your payments.”

How to pay off student loan debt

Most Americans with federal student loan debt can rest easy for now, as their payments are suspended until August 31, 2022. And President Biden has dangled the promise of student loan forgiveness to millions of borrowers.

Private student borrowers, on the other hand, may not be so lucky. Yet, while there is no blanket forbearance program, many lenders have offered extended forbearance options in the wake of the pandemic. For example, CommonBond allows its borrowers access to a special natural disaster forbearance program, which allows loans to remain in forbearance for up to 30 days after the end of the national emergency declaration.

Forbearance pauses your payments for a set period of time while you get back on your feet and may be an option to consider if you are having trouble keeping up with your payments in the future. But keep in mind that interest may continue to accrue on your loan, which means this move may end up costing you more money in the long run.

How to pay off your mortgage

Unfortunately, according to Todd Huettner of Huettner Capital, the time to refinance your mortgage and lock in a lower interest rate has probably passed, as the average mortgage rate is now above 5% (compare it to 2.65% in January 2021).

Huettner says if you’re in a situation where you have to choose which debt to pay off, homeowners should try to prioritize their mortgage payments because their home is likely their most valuable asset. “Even if you have to sell something valuable to make the payment, having a roof over your head is well worth the cost,” he says.

If you are experiencing temporary financial difficulties such as job loss, you may be able to get help from your lender. Like student loans, many mortgage officers offer forbearance programs for those who need help. In situations where difficulties persist over the long term, your lender can also help you explore more drastic options, such as a short sale.

While selling your home isn’t ideal, in many cases a short sale is considered a better option than defaulting on your mortgage and losing your home to foreclosure, as the impact on your credit scores is less important.

What steps should you take if you cannot repay your debts?

Unfortunately, even if you follow the tips above, it’s not always possible to get your debt under control. Here are some steps you can take if it becomes increasingly difficult to track your payments.

  • Reduce your budget: Reducing your budget should always be your first line of defense. Reducing — or even pausing non-essential spending for the time being — can give you more leeway to pay down debt. If you want to make sure your money goes to the right place, consider setting up autopay, which allows your creditors to take payment directly from your account, or setting aside the funds in a separate savings account. .
  • Work with your lender: If you’re having financial difficulty, lenders may allow you to find an alternate method of payment, such as temporarily suspending your payments while you get back on your feet or setting up a payment plan with a lower monthly payment or interest rate. more affordable interest.
  • Credit advice: If you’re going into more debt, consider getting credit counseling from an accredited nonprofit agency. Many reputable agencies offer counseling services at little or no cost to you.
  • Debt Consolidation: Debt consolidation allows you to streamline multiple debt payments into one and can help you save on interest. Typically, borrowers do this by taking out a new loan and using the funds to pay off their existing balances. You may have to pay fees on the new loan, which can increase your total borrowing costs.
  • Debt settlement: With this method, your creditors agree to accept less than they are owed in exchange for payment under a court-ordered repayment plan. Kirchenbauer says to be aware that debt settlements are reported to major credit bureaus and will negatively impact your scores, which may impact your ability to be approved for affordable financing in the future. Since debt settlement hurts your credit and you’ll likely have to pay legal fees, she says it should be considered a last resort.

Is a recession looming on the horizon?

When wondering if we are headed for an economic downturn, it is important to understand how the term “recession” is defined. By definition, the National Bureau of Economic Analysis (NBEA) considers a recession to be two consecutive quarters of economic decline in gross domestic product (GDP). However, in practice, most financial experts tend to take a broader view, looking at declines in activity across the economy as a whole.

The NBEA shared in its latest analysis that GDP shrank 1.4% in the first quarter of 2022, leaving many to suspect that a recession could be in the cards. For example, a new Deutsche Bank report predicts a recession by the end of 2023, and Fannie Mae analysts recently released a similar forecast.

Nevertheless, it is important to remember that predictions are only educated guesses and may not turn out to be correct or provide a complete picture of what will happen.

As Kirchenbauer points out, “The problem is that [the GDP] is a lagging indicator. We won’t know we’re in a recession until it’s already upon us. So it’s even more crucial to take stock of your finances and think about the impact a recession could have on you.

VGS Plaid Taps for Tokenization Services Mon, 16 May 2022 19:00:48 +0000

Data privacy provider Very Good Security (VGS) has launched an expanded partnership with data network Plaid to provide tokenization services, the company announced on Monday (May 16). Press release.

“Tokenization can help protect personally identifiable information (PII) and sensitive data from exposure and use for harmful purposes,” VGS said in the statement. “VGS will provide PII tokenization and financial data backup services for Plaid customers. This will help ensure end-to-end data security for Plaid customers by seamlessly integrating VGS services alongside Plaid APIs.

See also: “Zero Data” empowers companies to control – and find value – in sensitive data

VGS also said its Tokenization and Zero Data platform enables businesses to leverage sensitive data through format preservation and full portability, allowing customers to avoid vendor lock-in and recoup time spent. data security hygiene and compliance maintenance.

“Creating and operating financial applications involves interacting with PII and sensitive account data,” said Hoang Leung, Head of Payment Products and Solutions at VGS. “Tech companies building these apps get more out of data when tokenization is used, creating protection for the end user and efficient, secure operations for the business.”

Leung added that the partnership will allow Plaid customers to add new data security without disrupting their ecosystems, giving them the ability to derive more value from their data.

Last month, Plaid partnered with data privacy platform Skyflow to help developers build apps with data privacy infrastructure using its application programming interface (API). Skyflow’s Data Privacy Vault offering helps customers build FinTech applications with data privacy, security, and compliance tools.

Read more: Skyflow, Plaid Partner on Data Protection and Privacy for FinTechs

With this partnership, Skyflow offers predefined logins to Plaid products and a predefined vault path for Plaid customers, giving developers and users confidence that data accessed through Plaid will be stored securely.

PYMNTS spoke last year with Mahmoud Abdelkader, CEO and co-founder of VGS, about the value of a concept known as “zero data”.

Mechanically, zero data allows companies to map proprietary payment service provider (PSP) tokens and the underlying primary account number to a global alias, bringing together transactions for a given card or customer, regardless of location, channel or PSP. Zero data allows companies to reduce layers of customer activity — Abdelkader likened it to an onion — and forge stronger customer relationships.



On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveyed 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.

The merits of bulk Sun, 15 May 2022 18:34:05 +0000

As landlords focus on quality broadband service, the FCC’s decision not to touch mass agreements will provide consumers with quality service in all types of multi-family communities.

In February, the FCC issued a report, order, and declaratory decision “guaranteeing competitive choice of communications services in MDUs.” Why bother with the single-family market where there is only an incumbent cable company that is sometimes pushed around by a fiber overbuilder? Let’s address the real concern of apartment communities. This is where providers can make a real difference, the FCC said.

The FCC issued new rules regarding certain types of revenue-sharing agreements and created disclosure requirements for exclusive marketing agreements. It also ended the use of sale and leaseback provisions between IML owners and internal wiring providers. In other words, the agency has made some changes around the edges, describing landlords as “landlords” who only have a hand in for more revenue.

MDU owner transformation

Over the past two decades, there has been a transformation among property owners and their view of ancillary services and amenities. Although they seek diverse income in these areas, creating lifestyle amenities is key to making their properties more attractive to potential residents. Direct payments do not represent enough revenue to support an additional occupied unit.

But making the wrong technology decisions can negatively affect more than a single unit’s rental income. Landlords care about multiple sources of cash flow and rental rates and strive to continually improve the value of their property.

The FCC has created a solution that does not match the realities of today’s market. The owners are very concerned about the quality of these services and giving residents what they want. Do you have any service level commitments from your cable company if you own a home? Do you have any control over prices or conditions? No.

Mass Internet Review

This brings me to the bulk internet. The FCC assessed the merits of the internet en masse in 2010 and chose not to act. He reviewed it again in 2017 and found no reason to change the rules. In 2022, she made the right choice to maintain the mass agreements.

Landlords are using bundled deals to benefit their residents, and the demand for such deals is only accelerating. This is a good thing.

Bundled deals provide quality high-speed Internet services to residents of all types of multi-family communities. Internet service providers offer above-market speed at a reasonable rate in affordable housing communities. There are no setup fees, credit checks, individual contracts to sign, or waiting at home for a technician to arrive. Everything is included in the rent, providing a great way for low-income housing families to access the internet for school, work or play.

Today, wholesale internet deals are setting up shop in hundreds of affordable housing developments across the United States. In many establishments, properties use managed Wi-Fi networks that provide always-on Internet access without equipment. Additionally, bundled agreements include onsite technical support, access to customer service, and an easy-to-reach helpdesk. Bundled contracts help bridge the digital divide.

Bundled deals are also ideal for luxury apartments, where many residents are heavy users of innovative home apps. They like to watch over their home while they are away.

Additionally, all types of apartments are experiencing drastic changes in the work-from-home lifestyles of their residents. This makes the need for bulk internet even more critical. Quality bundle agreements come with modern infrastructure, service level obligations for vendors, and great convenience for end users.

Some might suggest that bundled deals limit options. In general, this is not the case – alternatives continue to be available from traditional providers. Additionally, as a long-time wholesale service provider, I can tell you that the level of competition to win a wholesale deal is intense, sometimes involving more than seven to 10 competitors bidding for those rights.

The FCC got it right by leaving the mass agreements intact. The merits are clear and the benefits to the consumer are apparent.

I hope the FCC will continue to make it right.

Bryan Rader is the president of MDU for Pavlov Media.

Bryan J. Rader

Here’s what high inflation means for student borrowers Sat, 14 May 2022 13:15:02 +0000

Inflation reached a 40 year record 8.5% in March and fell slightly to 8.3% in April. In times of high inflation, such as now, your dollar is worth less. You may have also heard that there is an upside – that your student debt is now worth less. And while that’s technically true, that’s not the whole story.

The current pause on federal student loan repayments has been extended through August 31, marking the sixth extension since the pandemic began. While this freeze offered temporary relief to borrowers, when repayments begin inflation will play a key role.

What is the exact impact of inflation on your student debt? We sat down with student loan expert Mark Kantrowitz, author of How to Appeal for More College Financial Aid, to discuss the specifics of what inflation means for student loan holders.

What are inflation rates and interest rates?

Inflation rates are a measure of the purchasing power of money. The Federal Reserve, the central banking system of the United States, is responsible for keeping inflation around 2% each year, the standard annual growth rate of the economy. When inflation rises above the 2% mark too quickly, as it has in recent months, the prices of goods and services rise, requiring more money for basic necessities and housing. This indicates a period of high inflation.

For example, in 2018 you could buy about 2 gallons of milk for $6. Today, however, that same amount of money will only buy you about 1.5 gallons of milk.

Interest rates represent the cost of borrowing. An interest rate is the amount a lender charges a borrower, which is a percentage of the total loan amount. For example, if you borrow $1,000 with an annual interest rate of 5% for a four-year term, your total interest costs would be $105.41 over the four-year term.

As inflation rises, the The Fed raises the federal funds rate, which is the rate it costs banks to lend to each other. Banks then react by raising consumer interest rates on loans and other financial products. The Fed does this to contain inflation, which makes it less attractive for consumers to borrow money, which in turn helps balance the supply and demand scales, stabilizes the economy and , theoretically, reduces the rate of inflation.

How Inflation Affects Your Student Loans

The rate increases will not affect existing fixed rate student loans, such as federal loans. Private borrowers with adjustable rate mortgages, however, could see their rates increase.

Moreover, in times of high inflation, the value of fixed rate student loans also decreases. “Inflation dictates that a dollar ten years ago is worth more than a dollar today. So as long as your wages are rising with inflation, debt from a loan you borrowed in the past will be worth less. today,” Kantrowitz said.

Essentially, if your wages rise in line with inflation at the same rate or more, it can make it a little easier to pay off your debt. However, average wage increases are currently not keeping up with inflation. As of March 2022, wages had risen only 5.6% over the past 12 months. This means that most Americans will not currently benefit from devalued student debt.

Here’s a breakdown of the impact inflation could have on you depending on your loan type and whether or not you’re still in school:

If you have federal student loans:

Federal student loans are fixed rate. This means that the interest rate will remain the same throughout the term of the loans.

If you have a federal student loan, inflation could work in your favor if your salary increases in line with the rate of inflation, as this will devalue your debt.

However, if, like most Americans, your wages have not increased at the same rate of inflation and rising prices stretch your budget even furtherthat devalued debt won’t help you – and you might even find it harder to repay your loans.

If you have private student loans:

Private student loans can be variable or fixed rate. For those with fixed rate loans, you don’t have to worry about inflation raising interest rates on your existing student debt. But if you have adjustable rate loans, your interest rates could go up – and may have already.

When inflation rates rise, interest rates generally follow. This means that holders of variable rate private loans could see higher interest rates in the future.

If you are a new borrower in 2022:

Federal student loan interest rates reset annually on July 1, and Kantrowitz noted that federal and private student loan interest rates will be higher for the 2022-23 academic year. The new federal student loan interest rates for the 2022-23 school year were just released this week and are as follows:

  • Undergraduate loans: 4.99%
  • Direct unsubsidized loans to graduates: 6.54%
  • PLUS Loans: 7.54%

This is a big leap for students. For reference, last year a federal undergraduate student loan had an interest rate of 3.73%, about 1.25% less than the rate for the upcoming academic year.

Will inflation impact loan repayments after federal payment freeze ends?

Kantrowitz said he expects the student loan repayment pause to be extended again, with renewed payments beginning after the 2022 midterms. However, whether or not the repayment freeze is extended may depend on the House’s decision. white on widespread remission of federal student loans (President Joe Biden is expected to make a decision on this in the coming weeks). As anything can happen, it’s best to prepare for repayment now, so you won’t be surprised if loans are due again in September.

For many, paying off student debt in times of high inflation is a real concern. According to the Student Debt Crisis Center, out of 23,532 borrowers, 92% of those working full time fear they will be able to pay in the face of soaring inflation.

“I personally couldn’t save to pay off a student loan, and I don’t think I could have accounted for the growing gap between wages and the national cost of living,” said Jonathan Casson, recently graduated from Cornell University.

If you’re worried about paying off your student debt, here are some tips for planning ahead:

How can you prepare to repay federal loans?

1. Look into income-driven repayment plans

The government offers four income-based repayment plans that can help make monthly payments more affordable for borrowers who need to reduce the size of payments. Each plan caps payments at between 10% and 20% of your discretionary income (income after taxes and necessities paid for) and cancels your loan balance after 20 or 25 years of payment. Eligibility for these plans depends on family size and discretionary income.

2. Refinance private loans now

With many interest rate hikes expected this year, refinancing all the variable rate private student loans you have into fixed rate student loans could help you save hundreds, if not thousands, in interest – and could even reduce your monthly payment. You should refinance as soon as possible, however, if you want to lock in the lowest possible fixed interest rate.

3. Consider your budget carefully

If paying off a student loan isn’t feasible with your current budget, see if there are ways to cut expenses or pay off high-interest debt now to free up cash in September. While adjusting your budget can seem daunting, there are plenty of resources and apps to help you calculate and identify expenses you can reduce or eliminate.

4. Consider secondary agitation

A part-time job outside of your main job can help supplement your income when inflation spikes. Currently, about a third of American adults have a side job, according to a 2021 Harris poll commissioned by Zapier. Another source of income can help fill an income gap in your budget and give you some respite.

Better Business Loans LLC expands its services to provide the best opportunities to help Georgia businesses obtain loans Sat, 14 May 2022 02:28:04 +0000

U.S.-based Better Business Loans LLC is leading the charge in helping Georgia businesses open doors, stay afloat to profit, and grow their business with fast loans.

Better Business Loans LLC has stepped up its efforts to provide the ultimate opportunities and loans to Georgia businesses that need to grow and qualify for fierce competition.

The US-based company has led the way in offering the best start-up loans, which are personal loans used to grow a new business or boost an existing one. It serves the following counties in Georgia: Dekalb, Clayton, Fulton, Clarke and Richmond.

“We offer entrepreneurs and those looking to start a business the best options available to them. We will only provide services that we are extremely proud of,” Lattimore said in a statement.

Business loans are crucial support to meet working capital needs and grow the business, says Lattimore. The team behind Better Business Loans LLC strives to help Georgian entrepreneurs boost their financial stability by providing loans they can easily access.

In order to apply for a loan, businesses must download the form available on the Better Business Loans LLC website. They can download the form and print it.

After printing the form, companies should fill it accordingly with accurate details and then scan the filed form. Then they should send the scanned form to the email address ––[email protected] –– with their name and e-mail address written in the document. This would complete their request for the form. The Better Business Loans LLC team will contact you immediately.

Businesses in Dekalb, Clayton, Fulton, Clarke and Richmond looking to get started can contact the team immediately or visit the Better Business Loans LLC website for more information.

Media Contact
Company Name: Best LLC Business Loans
Contact person: Johnnie Lattimore
E-mail: Send an email
Call: 4705692497
Address:5301 Xing Rider
City: Lithonia
State: AG 30038
Country: United States

10 Ways To Stay Motivated While Paying Off Debt According To PaydayChampion’s Mirek Saunders – CONAN Daily Sat, 14 May 2022 01:41:02 +0000

When you’re trying to pay off your debt, it can be hard to stay motivated. Especially if you’ve been struggling with it for a while. But don’t worry, because you are not alone. Thousands of people are in the same situation as you, and many of them have found ways to stay motivated and continue their journey to debt freedom.

In this blog post, Mirek Saunders from PaydayChampion, a well-established online loan referral service, shares 10 tips and tricks from experienced payday loan borrowers who successfully repaid their debts. These tips are for those who want to achieve financial freedom.

wads of dollar bills (©Celyn Kang)
  1. Make a plan.

Know what you need to do and when you need to do it. This will help keep you accountable and on track.

2. start small.

It can be overwhelming to think about paying off all your debts at once. So start with a loan or credit card balance and work your way up from there.

3. Define aims.

Both short term and long term. Having something to do will help you stay motivated even on days when you feel like you’re not making progress.

4. Find a support system.

Whether it’s friends, family, or an online community of people in the same situation as you, having someone to talk to and lean on can make all the difference.

5. Talk about your debt-free journey.

Sharing your experience and accomplishments with others will help you stay on track and stay motivated. It can also be a great way to inspire others who are striving to become debt free themselves.

6. Reward yourself.

Every time you hit a goal, give yourself a pat on the back (and maybe even a little treat!). This will help reinforce positive behavior and remind you that being debt-free is worth all the effort.

7. Keep a debt-free journal.

Document your journey so you can come back to it later and see how far you’ve come. It can be a great motivator when you’re feeling down about your progress.

8. Get inspired by the stories of others.

There are many people who have been in your shoes and come out of it debt-free. Reading or listening to their stories can give you the hope and motivation you need to keep going.

9. Visualize your goal.

Close your eyes and imagine what life will be like once you are finally debt free. What will you do with all that extra cash? How will it feel to not have the weight of debt hanging over your head?

ten. Remember why you do this.

It’s easy to lose sight of your goals when the going gets tough. But if you can remember why it’s important for you to be debt free, it will be that much easier for you to keep going.


If you’re struggling with payday loan debt, you’re not alone. Millions of Americans are in the same boat, and many of them have managed to pay off their debts. Use these tips and tricks from experienced debtors to help you stay motivated on your own journey to debt freedom. With hard work and dedication, you can accomplish anything.

It will be very helpful to find someone to hold you accountable, such as a financial adviser or even a friend.

Taking loans without a credit check is probably not a good idea right now. You need someone who will help hold you accountable, it will be a lot easier to stay on track and motivated while you pay down your debt. A financial advisor can help you develop a budget and payment plan tailored to your particular situation. And having a friend or family member to talk to can make all the difference in feeling motivated to pay off debt.

So reach out to your support network and find someone who can help you stay accountable on your journey to debt freedom. It will make all the difference in helping you stay motivated and on track.


The following discussion and analysis should be read in conjunction with our accompanying consolidated financial statements and accompanying notes.

As used herein, the terms "we," "our," "us," and "Company" refer to Strategic
Realty Trust, Inc., and, as required by context, Strategic Realty Operating
Partnership, L.P., a Delaware limited partnership, which we refer to as our
"operating partnership" or "OP", and to their respective subsidiaries.
References to "shares" and "our common stock" refer to the shares of our common

Special note regarding forward-looking statements

Certain statements included in this Quarterly Report on Form 10-Q that are not
historical facts (including any statements concerning investment objectives,
other plans and objectives of management for future operations or economic
performance, or assumptions or forecasts related thereto) are forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"). These statements are only predictions. We
caution that forward-looking statements are not guarantees. Actual events or our
investments and results of operations could differ materially from those
expressed or implied in any forward-looking statements. Forward-looking
statements are typically identified by the use of terms such as "may," "should,"
"expect," "could," "intend," "plan," "anticipate," "estimate," "believe,"
"continue," "predict," "potential" or the negative of such terms and other
comparable terminology.

The forward-looking statements included herein are based upon our current
expectations, plans, estimates, assumptions and beliefs, which involve numerous
risks and uncertainties. Assumptions relating to the foregoing involve judgments
with respect to, among other things, future economic, competitive and market
conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, our actual results and
performance could differ materially from those set forth in the forward-looking
statements. The following are some of the risks and uncertainties, although not
all of the risks and uncertainties, that could cause our actual results to
differ materially from those presented in our forward-looking statements:

•The potential adverse effect of the ongoing public health crisis of the novel
coronavirus disease (COVID-19) pandemic, or any future pandemic, epidemic or
outbreak of infectious disease, on the financial condition, results of
operations, cash flows and performance of the Company and its tenants, the real
estate market, in particular with respect to retail commercial properties and
the global economy and financial markets.

•Our executive officers and certain other key real estate professionals are also
officers, directors, managers, key professionals and/or holders of a direct or
indirect controlling interest in our advisor. As a result, they face conflicts
of interest, including conflicts created by our advisor's compensation
arrangements with us and conflicts in allocating time among us and other
programs and business activities.

•We are uncertain of our sources for funding our future capital needs. If we
cannot obtain debt or equity financing on acceptable terms, our ability to
continue to acquire real properties or other real estate-related assets, fund or
expand our operations and pay distributions to our stockholders will be
adversely affected.

•We depend on tenants for our revenue and, accordingly, our revenue is dependent
upon the success and economic viability of our tenants. Revenues from our
properties could decrease due to a reduction in tenants (caused by factors
including, but not limited to, tenant defaults, tenant insolvency, early
termination of tenant leases and non-renewal of existing tenant leases) and/or
lower rental rates, making it more difficult for us to meet our financial
obligations, including debt service and our ability to pay distributions to our

•All our assets are concentrated in one state and in urban retail properties,
any adverse economic, real estate or business conditions in this geographic area
or in the urban retail market could affect our operating results and our ability
to pay distributions to our stockholders.

•Our current and future investments in real estate and other real estate-related
investments may be affected by unfavorable real estate market and general
economic conditions, which could decrease the value of those assets and reduce
the investment return to our stockholders. Revenues from our properties could
decrease. Such events would make it more difficult for us to meet our debt
service obligations and limit our ability to pay distributions to our

•Certain of our debt obligations have variable interest rates with interest and
related payments that vary with the movement of LIBOR or other indices.
Increases in these indices could increase the amount of our debt payments and
limit our ability to pay distributions to our stockholders.

————————————————– ——————————


All forward-looking statements should be read in light of the risks identified
in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December
31, 2021 (the "2021 Annual Report on Form 10-K"). Any of the assumptions
underlying the forward-looking statements included herein could be inaccurate,
and undue reliance should not be placed upon on any forward-looking statements
included herein. All forward-looking statements are made as of the date of this
Quarterly Report on Form 10-Q, and the risk that actual results will differ
materially from the expectations expressed herein will increase with the passage
of time. Moreover, you should interpret many of the risks identified in this
Quarterly Report, as well as the risks set forth above, as being heightened as a
result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.
Except as otherwise required by the federal securities laws, we undertake no
obligation to publicly update or revise any forward-looking statements made
after the date of this Quarterly Report on Form 10-Q, whether as a result of new
information, future events, changed circumstances or any other reason. In light
of the significant uncertainties inherent in the forward-looking statements
included in this Quarterly Report on Form 10-Q, and the risks described in Part
I, Item 1A of the 2021 Annual Report on Form 10-K, the inclusion of such
forward-looking statements should not be regarded as a representation by us or
any other person that the objectives and plans set forth in this Quarterly
Report on Form 10-Q will be achieved.

————————————————– ——————————



We are a Maryland corporation that was formed on September 18, 2008, to invest
in and manage a portfolio of income-producing retail properties, located in the
United States, real estate-owning entities and real estate-related assets,
including the investment in or origination of mortgage, mezzanine, bridge and
other loans related to commercial real estate. During the first quarter of 2016,
we also invested, through joint ventures, in two significant retail projects
under development, one of which was substantially completed during the year
ended December 31, 2020. We have elected to be taxed as a real estate investment
trust ("REIT") for federal income tax purposes, commencing with the taxable year
ended December 31, 2009, and we have operated and intend to continue to operate
in such a manner. We own substantially all of our assets and conduct our
operations through our operating partnership, of which we are the sole general
partner. We also own a majority of the outstanding limited partner interests in
the operating partnership.

Since our inception, our business has been managed by an external advisor. We do
not have direct employees and all management and administrative personnel
responsible for conducting our business are employed by our advisor. Currently
we are externally managed and advised by SRT Advisor, LLC, a Delaware limited
liability company (the "Advisor") pursuant to an advisory agreement with the
Advisor (the "Advisory Agreement") initially executed on August 10, 2013, and
subsequently renewed every year through 2022. The current term of the Advisory
Agreement terminates on August 9, 2022. The Advisor is an affiliate of PUR
Management LLC, which is an affiliate of L3 Capital, LLC. L3 Capital, LLC is a
real estate investment firm focused on institutional quality, value-add, prime
urban retail and mixed-use investment within first tier U.S. metropolitan

Impact of COVID-19

Since March 2020, COVID-19 and the efforts to contain its spread have
significantly impacted the global economy, the U.S. economy, the economies of
the local markets throughout California in which our properties are
predominately located, and the broader financial markets. Nearly every industry
has been impacted directly or indirectly, and the U.S. retail market has come
under severe pressure due to numerous factors, including preventative measures
taken by local, state and federal authorities to alleviate the public health
crisis such as mandatory business closures, quarantines, restrictions on travel
and shelter-in-place or stay-at-home orders. California, where all of our
properties are located instituted various measures that required closure of
retail businesses or limited the ability of our tenants to operate their
businesses. As of June 30, 2021, the state of California lifted COVID-19 related
restrictions. However, there remains uncertainty as to whether customers will
re-engage with retail tenants at pre-pandemic levels. As a result of the
containment measures instituted in response to the pandemic, some of our tenants
have been experiencing hardships, as they were unable to operate at full
capacity until the middle of June 2021.

We believe that the COVID-19 outbreak has and may continue to have an adverse impact on our financial condition and results of operations, including, but not limited to, lower real estate rental income, inability to sell certain properties at a favorable price and a decrease in construction and leasing activity.

To mitigate the impact of COVID-19 on our operations and liquidity, we have taken a number of proactive measures, including the following:

•We are in constant communication with our tenants and have assisted tenants in
identifying local, state and federal resources that may be available to support
their businesses and employees during the pandemic, including stimulus funds
that may be available under the Coronavirus Aid, Relief, and Economic Security
Act of 2020.

•We believe we will be able to service our debts and pay for our ongoing general
and administrative expenses for the foreseeable future. As of March 31, 2022, we
have approximately $2.1 million in cash and cash equivalents. In addition, we
had approximately $0.5 million of restricted cash (funds held by the lenders for
property taxes, insurance, tenant improvements, leasing commissions, capital
expenditures, rollover reserves and other financing needs).

•On December 30, 2021, we obtained a $4.0 million unsecured loan (the "Unsecured
Loan") from PUR Holdings Lender, LLC, an affiliate of the Advisor. The Unsecured
Loan has a term of 12 months with an interest rate of 7.0% per annum,
compounding monthly with the ability to pay-off during the term of the loan. The
Unsecured Loan requires draw downs in increments of no less than approximately
$0.3 million. The Unsecured Loan will be due and payable upon the earlier of 12
months or the termination of the Advisory Agreement by us. On March 15, 2022, we
and PUR Holdings Lender, LLC, amended the loan agreement to allow for an
extension of the maturity date of the Unsecured Loan by six months, from
December 30, 2022 to June 30, 2023, if we provide PUR Holdings Lender, LLC, with
notice, pay an extension fee, and no event of default has occurred. The
Unsecured Loan is guaranteed by us. As of March 31, 2022, the Unsecured Loan had
an outstanding balance of approximately $2.4 million.

————————————————– ——————————


•The SRT Loan is secured by six of our core urban properties in Los Angeles and
San Francisco. The SRT Loan does not have restrictive covenants and ongoing debt
coverage ratios that could trigger a default caused by tenants not paying rent
or seeking rent relief.

•As of March 31, 2022, we were in compliance with all the terms of the Wilshire
Construction Loan (as defined below), which was scheduled to mature on May 10,
2022, with options to extend for two additional twelve-month periods, subject to
certain conditions. The lender for the Wilshire Construction Loan has informed
us that the maturity date will be extended to September 22, 2022. Similarly, as
of March 31, 2022, we were in compliance with the Sunset & Gardner Loan (as
defined below), which matures on October 31, 2022.

•We are actively exploring options if operating cash flow does not improve sufficiently, such as selling one or more assets that are not generating positive cash flow.

•To further preserve cash and liquidity, we suspended our Amended and Restated
Share Redemption Program (the "SRP"), effective on May 21, 2020. The SRP will
remain suspended and no further redemptions will be made unless and until our
board of directors (the "Board") approves the resumption of the SRP. In
addition, on March 27, 2020, the board of directors suspended the payment of any
dividend for the quarter ending March 31, 2020, and will reconsider future
dividend payments on a quarter-by-quarter basis. Dividend payments were not
reinstated as of March 31, 2022.

Given the uncertainty of the COVID-19 pandemic's impact on our business, the
full extent of the financial impact cannot be reasonably estimated at this time.
There remains uncertainty with respect to the demand for retail space and the
success of our tenants given the potential change in consumer behavior as a
result of the COVID-19 pandemic.

Real estate portfolio

As of March 31, 2022, our wholly-owned property portfolio included six retail
properties, excluding a land parcel, which we refer to as "our properties" or
"our portfolio," comprising an aggregate of approximately 27,000 square feet of
multi-tenant, commercial retail space located in one state. We purchased our
properties for an aggregate purchase price of approximately $35.3 million. As of
March 31, 2022 approximately 86% of our wholly-owned real estate investments
were leased (based on rentable square footage), with a weighted-average
remaining lease term of approximately 8.0 years. As of December 31, 2021,
approximately 86% of our portfolio was leased (based on rentable square footage
as of December 31, 2021), with a weighted-average remaining lease term of
approximately 6.3 years.

(dollars in thousands)                                                                                                Effective                                        Original
                                                                  Rentable Square              Percent                Rent (3)                       Date              Purchase
Property Name (1)                         Location                      Feet                 Leased (2)            (per Sq. Foot)                  Acquired              Price     Debt (4)

Wholly owned real estate investments

400 Grove Street                   San Francisco, CA                   2,000                         100  %       $        48.00                      6/14/2016       $  2,890          $  1,450
8 Octavia Street                   San Francisco, CA                   3,640                          47  %                63.41                      6/14/2016          2,740             1,500
Fulton Shops                       San Francisco, CA                   3,758                          50  %                61.20                      7/27/2016          4,595             2,200
450 Hayes                          San Francisco, CA                   3,724                         100  %                98.97                     12/22/2016          7,567             3,650
388 Fulton                         San Francisco, CA                   3,110                         100  %                72.28                       1/4/2017          4,195             2,300
Silver Lake                        Los Angeles, CA                    10,497                         100  %                84.15                      1/11/2017         13,300             6,900
                                                                      26,729                                                                                            35,287            18,000

Real estate investments held through joint ventures 3032 Wilshire Property

             Santa Monica, CA                   12,208                          42  %                94.71                       3/8/2016         13,500            12,711
                                                                      38,937                                                                                          $ 48,787          $ 30,711

(1) The list of properties does not include any residual parcel to topaz market from March 31, 2022.

(2) The percentage is based on the leasable square feet of each property at the
March 31, 2022.

(3)Effective rent per square foot is calculated by dividing the annualized March
31, 2022 contractual base rent by the total square feet occupied at the
property. The contractual base rent does not include other items such as tenant
concessions (e.g., free rent), percentage rent, and expense recoveries.

————————————————– ——————————


(4) Debt represents the outstanding balance as of March 31, 2022, and excludes
reclassification of approximately $0.2 million deferred financing costs, net, as
a contra-liability. For more information on our financing, refer to Note 7.
"Notes Payable, Net" to our condensed consolidated financial statements included
in this Quarterly Report.

Properties Under Development

From March 31, 2022we had a property under development at Hollywood, California. This development project is still in the planning phase and construction has not started.

Operating results

Comparison of the three months ended March 31, 2022compared to the three months ended March 31, 2021.

The following table provides summary information about our results of operations for the three months ended March 31, 2022 and 2021 (amounts in thousands):

                                                 Three Months Ended
                                                     March 31,
                                                  2022             2021     

$ Change % Change

  Rental revenue and reimbursements        $      734            $  715     

$19 2.7%

  Operating and maintenance expenses              485               506     

(21) (4.2)%

  General and administrative expenses             437               410     

27 6.6%

  Depreciation and amortization expenses          294               357           (63)       (17.6) %

  Interest expense                                320               313             7          2.2  %

  Net loss                                 $     (802)           $ (871)     $     69         (7.9) %

Our operating results for the three months March 31, 2022are not necessarily indicative of those expected for future periods.


The increase in revenue during the three months ended March 31, 2022, compared to the same period in 2021, is mainly due to the expiration of rent concessions granted to our tenants due to the COVID-19 pandemic. Increase partially offset by the disposal of Shops at Stream Turkey.

Operating and maintenance expenses

Operating and maintenance expenses decreased during the three months ended March
31, 2022, compared to the same periods in 2021, primarily due to lower bad debt
reserves and the of sale of Shops at Turkey Creek. Increase partially offset by
higher security and legal costs.

General and administrative expenses

General and administrative expenses increased during the quarter ended
March 31, 2022compared to the same period in 2021, mainly due to higher audit fees and other professional fees.

Depreciation and amortization

Depreciation and amortization decreased over the three months ended
March 31, 2022compared to the same periods in 2021, mainly due to the impairment charge incurred during the year ended December 31, 2021 at the Wilshire property.

Interest expense

Interest expense increased in the three months ended March 31, 2022compared to the same period in 2021, mainly due to higher amortization of deferred loan fees and interest expense related to the unsecured loan.

Cash and capital resources

Since our inception, our principal demand for funds has been for the acquisition
of real estate, the payment of operating expenses and interest on our
outstanding indebtedness, the payment of distributions to our stockholders and
investments in unconsolidated joint ventures and development properties. Prior
to the termination of our initial public offering in February 2013 we used
offering proceeds to fund our acquisition activities and our other cash needs.
Currently we have used and expect to continue to use debt financing, net sales
proceeds and cash flow from operations to fund our cash needs.

————————————————– ——————————


As of March 31, 2022, our cash and cash equivalents were approximately $2.1
million and we had $0.5 million of restricted cash (funds held by the lenders
for property taxes, insurance, tenant improvements, leasing commissions, capital
expenditures, rollover reserves and other financing needs).

Our aggregate borrowings, secured and unsecured, are reviewed by our board of
directors at least quarterly. Under our Articles of Amendment and Restatement,
as amended, which we refer to as our "charter," we are prohibited from borrowing
in excess of 300% of the value of our net assets. Net assets for purposes of
this calculation is defined to be our total assets (other than intangibles),
valued at cost prior to deducting depreciation, reserves for bad debts and other
non-cash reserves, less total liabilities. However, we may temporarily borrow in
excess of these amounts if such excess is approved by a majority of the
independent directors and disclosed to stockholders in our next quarterly
report, along with an explanation for such excess. As of March 31, 2022 and
December 31, 2021, our borrowings were approximately 125.7% and 120.2%,
respectively, of the carrying value of our net assets.

The following table summarizes, for the periods indicated, certain items of our condensed consolidated statements of cash flows (amounts in thousands):

                                                              Three Months Ended
                                                                   March 31,
                                                            2022                 2021             $ Change
Net cash provided by (used in):
Operating activities                                  $     (824)            $    (679)         $     (145)
Investing activities                                        (510)                 (462)                (48)
Financing activities                                       1,502                     -               1,502

Net increase (decrease) in cash, cash equivalents and restricted cash

                                       $      168            


Cash flow from operating activities

The change in cash flows from operating activities was primarily due to lower
provisions for losses on tenant receivables and the payment of accounts payable
and accrued expenses related to repair work at the Silverlake Property and
building improvements at the Wilshire Property during the three months ended
March 31, 2022 as compared to the same period in 2021.

Cash flow from investing activities

Cash flows used in investing activities during the three months ended March 31,
2022 and 2021, primarily consisted of $0.4 million of additional investment in
the Sunset and Gardner Joint Venture, respectively.

Cash flow from financing activities

Cash flows provided by financing activities during the three months ended March
31, 2022, primarily consisted of proceeds of approximately $1.4 million from a
draw down on the Unsecured Loan from PUR Holdings Lender, LLC, an affiliate of
the Advisor. Additional cash provided by construction loan proceeds of
approximately $0.2 million.

Short-term liquidity and capital resources

Our principal short-term demand for funds is for the payment of operating
expenses and the payment on our outstanding indebtedness. To date, our cash
needs for operations have been funded by cash provided by property operations,
the sales of properties, debt refinancing, and the sale of shares of our common
stock. We may fund our short-term operating cash needs from operations, from the
sales of properties and from debt.

On December 30, 2021, in order to fund our short-term liquidity needs we
obtained a $4.0 million Unsecured Loan from PUR Holdings Lender, LLC, an
affiliate of the Advisor. The Unsecured Loan has a term of 12 months with an
interest rate of 7.0% per annum, compounding monthly with the ability to pay-off
during the term of the loan. The Unsecured Loan requires draw downs in
increments of no less than approximately $0.3 million. The Unsecured Loan will
be due and payable upon the earlier of 12 months or the termination of the
Advisory Agreement by us. On March 15, 2022, we and PUR Holdings Lender, LLC,
amended the loan agreement to allow for an extension of the maturity date of the
Unsecured Loan by six months, from December 30, 2022 to June 30, 2023, if we
provide PUR Holdings Lender, LLC, with notice, pay an extension fee, and no
event of default has occurred. The Unsecured Loan is guaranteed by us.

————————————————– ——————————


Long-term liquidity and capital resources

On a long-term basis, our principal demand for funds will be for real estate and
real estate-related investments, additional investment in our development
projects and the payment of acquisition-related expenses, operating expenses,
distributions to stockholders, future redemptions of shares and interest and
principal payments on current and future indebtedness. Generally, we intend to
meet cash needs for items other than acquisitions and acquisition-related
expenses from our cash flow from operations, debt and sales of properties. On a
long-term basis, we expect that substantially all cash generated from operations
will be used to pay distributions to our stockholders after satisfying our
operating expenses including interest and principal payments. We may consider
future public offerings or private placements of equity. Refer to Note 7. "Notes
Payable, Net" to our condensed consolidated financial statements included in
this Quarterly Report on Form 10-Q for additional information on the maturity
dates and terms of our outstanding indebtedness.

Our ability to access capital on favorable terms as well as to use cash from
operations to continue to meet our liquidity needs could be affected by the
effects of the COVID-19 pandemic. The full impact of the COVID-19 pandemic on
our rental revenue and, as a result, future cash from operations cannot be
determined at present.

We believe that our cash on hand, along with other potential aforementioned
sources of liquidity that we may be able to obtain, will be sufficient to fund
our working capital needs and debt obligations for at least the next twelve
months and beyond. However, this forward-looking statement is subject to a
number of uncertainties, including with respect to the duration of the COVID-19
pandemic, and there can be no guarantee that we will be successful with our
plan. Moreover, over the long term, if our cash flow from operations does not
increase from current levels, we may have to address a liquidity deficiency. We
are actively exploring options should cash flow from operations not sufficiently
improve, such as a sale of one or more assets that are not generating positive
cash flow or the sale of equity to an institutional investor.

Recent financing transactions

Multi-property secure financing

On December 24, 2019we have entered into a loan agreement (the “TRS Loan Agreement”) with PFP Holding Company, LLC (the “SRT Lender”) for a non-recourse secured loan (the “SRT Loan”).

The SRT Loan is secured by first deeds of trust on our five San Francisco assets
(Fulton Shops, 8 Octavia, 400 Grove, 450 Hayes and 388 Fulton Street) as well as
our Silverlake Collection located in Los Angeles. The SRT Loan matures on
January 9, 2023. We have an option to extend the term of the loan for two
additional twelve-month periods, subject to the satisfaction of certain
covenants and conditions contained in the SRT Loan Agreement. We have the right
to prepay the SRT Loan in whole at any time or in part from time to time,
subject to the payment of yield maintenance payments if such prepayment occurs
in the first 18 months of the loan term, calculated through the 18th monthly
payment date, as well as certain expenses, costs or liabilities potentially
incurred by the SRT Lender as a result of the prepayment and subject to certain
other conditions contained in the loan documents. Individual properties may be
released from the SRT Loan collateral in connection with bona fide third-party
sales, subject to compliance with certain covenants and conditions contained in
the SRT Loan Agreement. Any prepayment or repayment on or before the first 12
months of the loan term in connection with a bona fide third-party sale of a
property securing the SRT Loan shall only require the payment of yield
maintenance payments calculated through the 12th monthly payment date.

As of March 31, 2022, the SRT Loan had a principal balance of approximately
$18.0 million. The SRT Loan is a floating LIBOR rate loan which bears interest
at 30-day LIBOR (with a floor of 1.50%) plus 2.80%. The default rate is equal to
5% above the rate that otherwise would be in effect. Monthly payments are
interest-only with the entire principal balance and all outstanding interest due
at maturity.

Pursuant to the SRT Loan, we must comply with certain matters contained in the
loan documents including but not limited to, (i) requirements to deliver audited
and unaudited financial statements, SEC filings, tax returns, pro forma budgets,
and quarterly compliance certificates, and (ii) minimum limits on our liquidity
and tangible net worth. The SRT Loan contains customary covenants, including,
without limitation, covenants with respect to maintenance of properties and
insurance, compliance with laws and environmental matters, covenants limiting or
prohibiting the creation of liens, and transactions with affiliates.

As part of the SRT loan, we executed the usual non-recourse non-recourse and environmental guarantees, as well as limited additional insurance on the condominium structures of the San Francisco assets.


————————————————– ——————————


Loans secured by properties

On May 7, 2019, we refinanced and repaid our financing with Lone Oak Fund, LLC
with a new construction loan from ReadyCap Commercial, LLC (the "Lender") (the
"Wilshire Construction Loan"). As of March 31, 2022, the Wilshire Construction
Loan had a principal balance of approximately $12.7 million, with future funding
available up to a total of approximately $13.9 million, and bears an interest
rate of 1-month LIBOR (with a floor of 2.467%) plus an interest margin of 4.25%
per annum, payable monthly. The Wilshire Construction Loan was scheduled to
mature on May 10, 2022, with options to extend for two additional twelve-month
periods, subject to certain conditions as stated in the loan agreement. The
lender has informed us that the maturity date will be extended to September 22,
2022. The Wilshire Construction Loan is secured by a first Deed of Trust on the
Wilshire Property. We executed a guaranty that guaranties that the loan interest
reserve amounts are kept in compliance with the terms of the loan agreement. The
Lender also required that a principal in the upstream owner of our joint venture
partner in the Wilshire Joint Venture (the "Guarantor"), guarantees performance
of borrower's obligations under the loan agreement with respect to the
completion of capital improvements to the property. We executed an Indemnity
Agreement in favor of the Guarantor against liability under that completion
guaranty except to the extent caused by gross negligence or willful misconduct,
as well as for liabilities incurred under the Environmental Indemnity Agreement
executed by the Guarantor in favor of the Lender. We used working capital funds
of approximately $3.1 million to repay the difference between the Wilshire
Construction Loan initial advance and the prior loan, to pay transaction costs,
as well as to fund certain required interest and construction reserves.

Loans secured by Properties in development

On October 29, 2018, we entered into a loan agreement with Lone Oak Fund, LLC
(the "Sunset & Gardner Loan"). The Sunset & Gardner Loan has a principal balance
of approximately $8.7 million, and had an interest rate of 6.9% per annum. The
original Sunset & Gardner Loan agreement matured on October 31, 2019. We
extended the Sunset & Gardner Loan for an additional twelve-month period under
the same terms, with an interest rate of 6.5% per annum. On July 31, 2020, we
extended the Sunset & Gardner Loan for an additional twelve-month period under
the same terms, with an interest rate of 7.3% per annum. On July 21, 2021, we
extended the Sunset & Gardner Loan for an additional twelve-month period under
the same terms, with an interest rate of 7.9% per annum. The new maturity date
is October 31, 2022. The Sunset & Gardner Loan is secured by a first Deed of
Trust on the Sunset & Gardner Property.

Loan with Affiliate

On December 30, 2021, we obtained a $4.0 million unsecured loan (the "Unsecured
Loan") from PUR Holdings Lender, LLC, an affiliate of the Advisor. The Unsecured
Loan has a term of 12 months with an interest rate of 7.0% per annum,
compounding monthly with the ability to pay-off during the term of the loan. The
Unsecured Loan requires draw downs in increments of no less than approximately
$0.3 million. The Unsecured Loan will be due and payable upon the earlier of 12
months or the termination of the Advisory Agreement by us. The Unsecured Loan is
guaranteed by us. On March 15, 2022, we and PUR Holdings Lender, LLC, amended
the loan agreement to allow for an extension of the maturity date of the
Unsecured Loan by six months, from December 30, 2022 to June 30, 2023, if we
provide PUR Holdings Lender, LLC, with notice, pay an extension fee, and no
event of default has occurred. As of March 31, 2022 the Unsecured Loan had an
outstanding balance of approximately $2.4 million.

Total Operating Expenditure Guidelines

We reimburse our Advisor for some expenses paid or incurred by our Advisor in
connection with the services provided to us, except that we will not reimburse
our Advisor for any amount by which our total operating expenses at the end of
the four preceding fiscal quarters exceed the greater of (1) 2% of our average
invested assets, as defined in our charter; and (2) 25% of our net income, as
defined in our charter, or the "2%/25% Guidelines" unless a majority of our
independent directors determines that such excess expenses are justified based
on unusual and non-recurring factors. For the three months ended March 31, 2022
and 2021, our total operating expenses did not exceed the 2%/25% Guidelines.

Our Advisory Agreement provides that the Advisor shall not be required to
reimburse to us any operating expenses incurred during a given period that
exceed the applicable limit on "Total Operating Expenses" (as defined in the
Advisory Agreement) to the extent that such excess operating expenses are
incurred as a result of certain unusual and non-recurring factors approved by
our board of directors, including some related to the execution of our
investment strategy as directed by our board of directors.

————————————————– ——————————



The majority of our leases at our properties contain inflation protection
provisions applicable to reimbursement billings for common area maintenance
charges, real estate tax and insurance reimbursements on a per square foot
basis, or in some cases, annual reimbursement of operating expenses above a
certain per square foot allowance. We expect to include similar provisions in
our future tenant leases designed to protect us from the impact of inflation.
Due to the generally long-term nature of these leases, annual rent increases, as
well as rents received from acquired leases, may not be sufficient to cover
inflation and rent may be below market rates.

REIT Compliance

To qualify as a REIT for tax purposes, we are required to annually distribute at
least 90% of our REIT taxable income, subject to certain adjustments, to our
stockholders. We must also meet certain asset and income tests, as well as other
requirements. If we fail to qualify as a REIT in any taxable year, we will be
subject to federal income tax (including any applicable alternative minimum tax)
on our taxable income at regular corporate rates and generally will not be
permitted to qualify for treatment as a REIT for federal income tax purposes for
the four taxable years following the year during which our REIT qualification is
lost unless the IRS grants us relief under certain statutory provisions. Such an
event could materially adversely affect our net income and net cash available
for distribution to our stockholders.

Quarterly Distributions

As set forth above, in order to qualify as a REIT, we are required to distribute
at least 90% of our annual REIT taxable income, subject to certain adjustments,
to our stockholders. Our board of directors will continue to evaluate the amount
of future quarterly distributions based on our operational cash needs.

Some or all of our distributions have been paid, and may continue to be paid in the future, from sources other than operating cash flow.

In light of the COVID-19 pandemic, its impact on the economy and the related
future uncertainty, on March 27, 2020, our board of directors determined to
suspend the payment of any dividend for the quarters ending March 31, 2020, and
to reconsider future dividend payments on a quarter by quarter basis. Dividend
payments were not reinstated as of March 31, 2022.

Funds from operations

Funds from operations ("FFO") is a supplemental non-GAAP financial measure of a
real estate company's operating performance. The National Association of Real
Estate Investment Trusts, or "NAREIT", an industry trade group, has promulgated
this supplemental performance measure and defines FFO as net income, computed in
accordance with GAAP, plus real estate related depreciation and amortization and
excluding extraordinary items and gains and losses on the sale of real estate,
and after adjustments for unconsolidated joint ventures (adjustments for
unconsolidated partnerships and joint ventures are calculated to reflect FFO.)
It is important to note that not only is FFO not equivalent to our net income or
loss as determined under GAAP, it also does not represent cash flows from
operating activities in accordance with GAAP. FFO should not be considered an
alternative to net income as an indication of our performance, nor is FFO
necessarily indicative of cash flow as a measure of liquidity or our ability to
fund cash needs, including the payment of distributions.

We consider FFO to be a meaningful, additional measure of operating performance
and one that is an appropriate supplemental disclosure for an equity REIT due to
its widespread acceptance and use within the REIT and analyst communities.
Comparison of our presentation of FFO to similarly titled measures for other
REITs may not necessarily be meaningful due to possible differences in the
application of the NAREIT definition used by such REITs.

————————————————– ——————————


Our calculation of FFO attributable to common shares and Common Units and the
reconciliation of net income (loss) to FFO is as follows (amounts in thousands,
except shares and per share amounts):

                                                                           Three Months Ended
                                                                                March 31,
FFO                                                                                  2022                  2021
Net loss                                                                        $       (802)         $       (871)

Depreciation of real estate                                                              250                   310
Amortization of in-place leases and leasing costs                                         44                    47

FFO attributable to common shares and Common Units (1)                      

(508) $ (514) $

FFO per share and Common Unit (1)                                           

$(0.05) $(0.05)

Weighted average common shares and units outstanding (1)                          10,957,289            10,957,204

(1)Our common units have the right to convert a unit into common stock for a
one-to-one conversion. Therefore, we are including the related non-controlling
interest income/loss attributable to common units in the computation of FFO and
including the common units together with weighted average shares outstanding for
the computation of FFO per share and common unit.

Transactions and agreements with related parties

We are currently party to the Advisory Agreement, pursuant to which the Advisor
manages our business in exchange for specified fees paid for services related to
the investment of funds in real estate and real estate-related investments,
management of our investments and for other services. Refer to Note 11. "Related
Party Transactions" to our condensed consolidated financial statements included
in this Quarterly Report on Form 10-Q for a discussion of the Advisory Agreement
and other related party transactions, agreements and fees.

Significant Accounting Policies and Estimates

Our interim unaudited condensed consolidated financial statements have been
prepared in accordance with GAAP and in conjunction with the rules and
regulations of the SEC. The preparation of our financial statements requires
significant management judgments, assumptions and estimates about matters that
are inherently uncertain. These judgments affect the reported amounts of assets
and liabilities and our disclosure of contingent assets and liabilities at the
dates of the financial statements and the reported amounts of revenue and
expenses during the reporting periods. With different estimates or assumptions,
materially different amounts could be reported in our financial statements.
Additionally, other companies may utilize different estimates that may impact
the comparability of our results of operations to those of companies in similar
businesses. A discussion of additional accounting policies that management
considers critical in that they involve significant management judgments,
assumptions and estimates is included in our 2021 Annual Report on Form 10-K.

Subsequent events

We assess subsequent events up to the date of issue of the condensed consolidated financial statements.

© Edgar Online, source Previews

]]> Stablecoin Regs Asked As Prices Crash Fri, 13 May 2022 14:51:40 +0000

The drop in price of the stablecoin TerraUSD and the collapse of its associated cryptocurrency LUNA have sparked a global call for stablecoin regulation. From the US Treasury Secretary to the Securities and Exchange Commission (SEC) or the Bank for International Settlements (BIS), regulators around the world have expressed concerns about stablecoins and the need to enact regulations.

Big Tech companies had a quiet week as the UK announced new rules it plans to introduce in the coming months. One of the bills that could affect Big Tech probably won’t pass until next year.

Financial and banking regulators in Europe and the United States issued advisories on non-bank lenders and fair lending, and they continued their work on regulating bank mergers and artificial intelligence (AI).

Crypto and Stablecoins

The loss in value of TerraUSD has given some regulators good arguments that stablecoins are likely to panic. And a run is what happened earlier this week. U.S. Treasury Secretary Janet Yellen mentioned TerraUSD’s collapse Tuesday morning (May 10) during a hearing before the Senate Banking Committee as she discussed the report, using it to highlight the “risk for financial stability” that stablecoins represent.

Read more: Push to Regulate Stablecoins Gains Momentum as TerraUSD Spirals

Pablo Hernández de Cos, Chairman of the Basel Committee on Banking Supervision and Governor of the Bank of Spain, warned Thursday, May 12 that rapid developments in decentralized finance (DeFi) and crypto assets require proactive regulation and regulation. and future-oriented. prudential approach. Although some assets are considered “stable” and “currency,” they often fail on both counts, argued Hernández de Cos.

See more : BIS Committee Chairman Questions Benefits of Crypto, Calls for Regulation

Also on Thursday, SEC Commissioner Hester Peirce said there could be some movement around stablecoins to enact new regulations. And SEC Chairman Gary Gensler said his agency should look into stablecoin risks, growing concerns over financial stability and monetary policy.

Read more: SEC’s Peirce Anticipates Stablecoin Regulation in the Wake of Terra Tumble

Amid the stablecoin and crypto meltdown, Coinbase registered with the SEC “to gain better access to capital markets quickly and efficiently when needed,” and although the company has no no immediate plans to offer securities at this time, with this registration Coinbase will “be able to offer and sell securities in the future.” Registration could allow Coinbase to quickly offer any crypto asset on its platform that could be considered a security by the SEC or by a court.

See more : Coinbase registers with the SEC to avoid regulatory setbacks

Big tech

The British government unveiled its legislative program for the next parliamentary session on Tuesday. The most important bill for Big Tech is the Online Safety Bill, which aims to limit harm online by dramatically increasing Big Tech’s responsibilities to monitor content posted on their platforms. Other bills, such as the Brexit Freedom Bill, the Media Bill or the Data Reform Bill, will also have an impact on Big Tech.

Read more: Queen’s Speech to Parliament highlights new rules for big tech

A bill to create a new tech watchdog with the power to sanction Big Tech companies if they breach competition and consumer rules will only be discussed as a “bill.” This means that while the government is still planning to introduce legislation to underpin the powers of the Digital Markets Unit (DMU), it will do so in due course, and it may not be during the parliamentary session which begins on Friday. (May 13). ).

See more : Google and Meta Dodge UK’s plan to force fairer deals with publishers


The Consumer Financial Protection Bureau (CFPB) issued an advisory on Monday (May 9) to affirm that banks and other lenders must follow fair lending laws when canceling loans or changing terms and not just during the application process. The rules apply before and after credit approval by the bank.

Read more: CFPB advice on fair lending rules could extend to AI

On the same day, the CFPB defended its payday lender rules in court. Industry trade associations have argued that the payday rules enacted in 2017 violate federal rule-making procedures and Supreme Court precedents and should therefore be struck down.

See more : Payday lenders face tough road to invalidate CFPB rules

Lending rules may also be subject to regulatory scrutiny in Europe. the The European Banking Authority (EBA) has warned that the largely unharmonised regulatory regimes across Europe regarding non-bank lending could create challenges for stakeholders, including regulators, and it has recommended changes that could affect lending solutions like buy now, pay later (BNPL) and peer-to-peer (P2P) platforms.

Read more: EBA warns against non-bank lenders and recommends regulatory changes

Speaking at an event on Monday, Acting Comptroller of the Currency Michael Hsu spoke about the need to rethink the assessment of bank mergers and asked his team to work with the Department of Justice (DOJ) and d ‘other banking regulators to review merger executives.

See more : OCC comptroller directs staff to review bank merger framework



On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveys 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.